The Chartered Financial Analyst (CFA) designation is fast becoming a requirement for serious investment professionals. It...

The Chartered Financial Analyst (CFA) designation is fast becoming a requirement for serious investment professionals. It is an attractive alternative to getting an MBA for students wanting a career in investment. A student of finance is curious to know if a CFA designation is a more lucrative option than an MBA. He collects data on 38 recent CFAs with a mean salary of $138,000 and a standard deviation of $34,000. A sample of 80 MBAs results in a mean salary of $130,000 with a standard deviation of $46,000.

1) Calculate the value of the test statistic. Do not assume that the population variances are equal. (Round all intermediate calculations to at least 4 decimal places and final answer to 3 decimal places.)

2) At the 5% significance level, is a CFA designation more lucrative than an MBA?

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orchestra answered 1 year ago

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